Analysis Company Talks About Altcoin Season! Is the Decline an Opportunity? "Pay Attention Here!"

Cryptocurrency analysis firm Alphractal, stating that the Altcoin Season Index has reached an extreme level, released an update on the state of the altcoin market, emphasizing that it is an important moment for investors.

The company suggests that this may be an accumulation opportunity for some altcoins, but caution is advised due to market conditions.

According to Alphractal, the daily Altcoin Season Index with a 60-day Percentage Change period shows that the market has returned to the Bitcoin Season zone. This change has led to an increase in Bitcoin dominance, making the current period very important for altcoins.

Short-term indicators draw a different picture. According to the analysis firm, the Altcoin Season Index on the hourly time frame indicates a sharp decline in altcoin prices, pointing to volatility. Some investors may interpret this decline as a buying opportunity, but Alphractal advises caution. Only 30-40% of altcoins currently show a daily RSI in oversold territory, meaning many assets, especially those that have recently risen, may still face further correction.

The market sensitivity of large investors or 'whales' adds another layer of concern. Alphractal's Whale and Retail Delta analysis shows that whales are maintaining their short positions or reducing their exposure to long positions. In particular, individual traders continue to be more eager to enter long positions, while not yet showing significant interest in long positions after the recent decline.

Alphractal warns that risk management is very important, considering the high leverage ratio faced by individual investors, although some savings would be reasonable.